Annick Baumann

Annick Baumann asked about the puts and takes for Q4 guidance, noting historical larger beats in Q4, and whether the guidance framework remains consistent with historical approaches.

Answer

CFO Brett Tighe stated that the company aims to get closer to a 10% beat on guidance, acknowledging that Q3's beat was due to team outperformance. For Q4, guidance is based on market conditions and internal expectations. He reiterated that the goal is to execute Q4 as strongly as possible, as it is their seasonally largest quarter, to finish FY26 with strong results.

Annick Baumann of Jefferies, on for Joe Gallo, asked about any notable strengths or weaknesses in specific verticals or geographies beyond the federal sector, and also inquired about the key to unlocking Okta's international market opportunity.

Answer

CFO Brett Tighe and President & COO Eric Kelleher both highlighted continued strength in the large enterprise segment, evidenced by high growth in customers with over $100k and $1M in spend. CEO Todd McKinnon explained that the international strategy is to focus investment ruthlessly on its top 10 countries to maximize growth and avoid spreading resources too thinly.

Annick Baumann from Jefferies asked about the drivers of new logo acquisition, specifically in displacing legacy IGA solutions.

Answer

CFO Brian Carolan explained that new logo growth is primarily driven by displacing old, expensive, and often on-premise legacy solutions. He emphasized that customers are actively seeking a more modern, efficient, and platform-based SaaS approach to identity security, creating significant headroom for SailPoint in this underpenetrated market.